What is Eminent Domain?
When the government wishes to take over private property for public use, matters can quickly become complicated.
Ordinarily, a government can exercise eminent domain only for a "public use" which may be expansively defined along the lines of public "safety, health, interest, or convenience." The most common example may be the taking of land to build or expand a public road or highway. Public use could also include the taking of land to build a school or municipal building, for a public park, or to redevelop a "blighted" property or neighborhood.
Ordinarily, a government can exercise eminent domain only for a "public use" which may be expansively defined along the lines of public "safety, health, interest, or convenience." The most common example may be the taking of land to build or expand a public road or highway. Public use could also include the taking of land to build a school or municipal building, for a public park, or to redevelop a "blighted" property or neighborhood.
Typical Process of Eminent Domain
The following steps are fairly typical when your home or business is being acquired by the federal, state, or local government:
- The government attempts to negotiate the purchase of the property for fair value.
- If the owner does not wish to sell, the government files a court action to exercise eminent domain, and serves or publishes notice of the hearing as required by law.
- A hearing is scheduled, at which the government must demonstrate that it engaged in good faith negotiations to purchase the property, but that no agreement was reached. The government must also demonstrate that the taking of the property is for a public use, as defined by law. The property owner is given the opportunity to respond to the government's claims.
- If the government is successful in its petition, proceedings are held to establish the fair market value of the property. Any payment to the owner is first used to satisfy any mortgages, liens and encumbrances on the property, with any remaining balance paid to the owner. The government obtains title.
- If the government is not successful, or if the property owner is not satisfied with the outcome, either side may appeal the decision.
Fair and Just Compensation
Usually, fair value is considered to be the fair market value. The property value is assessed, and if the parties do not agree on the value, they will typically utilize appraisers to assist in the negotiation process.
Occasionally, fair value includes more than the price of an item of property or real estate. This has to do with whether a business is open and operating, customer relations, reputation, location, and whether the land is leased or owned by the business. The legal complexities in this area are best handled by a competent attorney who specializes in this area of law.
Occasionally, fair value includes more than the price of an item of property or real estate. This has to do with whether a business is open and operating, customer relations, reputation, location, and whether the land is leased or owned by the business. The legal complexities in this area are best handled by a competent attorney who specializes in this area of law.